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23 Jul, 2010 23:50

US may be facing a second foreclosure crisis

Tens of thousands of people traveled to Washington, DC to take part in the Save the Dream Program, sponsored by the Neighborhood Assistance Corporation of America, or NACA.

NACA helps people facing foreclosure to get a lower rate on their mortgage or a lower interest rate. Some people traveled from across the country, calling this their last hope to save their home.

Neighbourhood Assistance Corporation of America CEO Bruce Marks and his many volunteers work with people to help them. They get counseling and meet with lenders to come up with an affordable mortgage – negotiating a lower interest rate, for example. Not everyone qualifies, but everyone is at least promised an answer.

“My mortgage basically is out of reach, so I am actually choosing whether to eat or pay my mortgage,” says Michelle Watts, who is trying to save her home from foreclosure.

NACA also targets CEOs of big banks who they say caused this crisis, protesting outside their houses and putting furniture on their lawns, as well as on Capitol Hill.

“Even though Congress wants to pretend that there is no crisis out there and President Obama wants to pretend that he solved it – the fact of the matter is it's just as bad and it's not getting better,” Bruce Marks says.

RT contributor Danny Schechter argued that the US Government helps banks but doesn't help ordinary people who face foreclosures. He said a federal report shows that more home owners are learning they do not qualify for the Obama administration’s home ownership assistance programs.

“They [programs] are failing miserably,” said Schechter. “The government programs are not working.”

Schechter explained that only a small percentage of people facing foreclosure are being helped, either through interest reeducation or alterations to their payments plans to make their monthly payments more affordable. He argued that the government is not offering debt relief.

Affordability is a key factor,” said Schechter. “This government program sort of dictates criteria. It doesn’t work with the people to try and come up with an affordable solution.”